Exam NPPE Topic 5 Question 199 Discussion

Actual exam question for APEGS's NPPE exam
Question #: 199
Topic #: 5

Which of the following situations gives an example of breach of contract by inadvertence?

A. A service provider interprets the meaning of the contract differently than the service receiver. B. A service provider unintentionally fails to carry out one of its promises or obligations specified in the contract. C. A service provider loses money on a contract and determines that it would cost less to let the company go bankrupt than to complete the contract. D. A service provider would like to perform its obligations but is unable to do so for reasons such as lack of financial resources or lack of necessary equipment or expertise.

Suggested Answer: B Vote an answer

A breach of contract occurs when a party fails to perform a contractual obligation. NPPE materials often distinguish types of breach by intent or cause: inadvertent breach is an unintentional failure to meet a promise (e.g., oversight, mistake in execution), as opposed to deliberate breach (sometimes called efficient breach) where a party knowingly chooses not to perform, or incapacity-related non-performance where the party cannot perform due to insufficient resources or capability. Option B directly describes inadvertence:
unintentionally failing to carry out a specified promise or obligation. Option C describes a deliberate decision not to perform (a willful breach). Option D reflects inability to perform due to lack of resources or expertise- more akin to incapacity or poor planning, not "inadvertence" in the narrow sense used in NPPE summaries.
Option A is more about contract interpretation/ambiguity and potential dispute over meaning; it may lead to an alleged breach, but it is not the clearest example of inadvertent breach. Therefore, B is the best answer.

by Aurora at Mar 28, 2026, 01:09 PM

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